The Blacksmith Shop with a store upstairs was built in 1851 by Henry Dearborn. It is located at the south entrance to the quarry. It was built to care for his quarry horses about the time he built his home. Around 1875 the second floor was a general store and later a carpenter shop. The Blacksmith shop was donated to the Stone City Foundation by Ernie Buresh. Its restoration has been a priority of the foundation since that time.
Today it has a working forge with blacksmith demonstrations open to the public. Stone City Foundation meetings and other events are held upstairs around the cozy wood burning stove.